|
|
|
Revision:Structural Hypotheses
From The Student RoomTSR Wiki > Study Help > Subjects and Revision > Revision Notes > Economics > Structural Hypotheses Frances economic performance reflection of the economic performance of her trading patterns at odds with view that deep structural forces determined France economic response to the opportunities opened up by the IR Constancy of gap nicely explained by structural difference cause cannot be technology, resources, economic institutions or even institutions forming human capital equally endowed as Britain deeper structural reason three structures for economic retardation: Interventionist policies restricting gains from trade (dirigisme)That Estates General did not model itself into self-governing parliament restricting personal liberty meant restriction economic liberty oppressive taxation, over regulation and excessive protection Taxation over taxation recurring theme Mathias and OBrien 18th century fiscal effort less strenuous than Englands 10 11% commodity output taxes cf. 17-22% England investment tax, not on consumption and land tax may have penalised those who improved it Regulation question of whether 17th century income gap caused by over regulation must be considered unanswered needs clinometric testing. Protection Nye reexamines whether protection encouraged survival of inefficient firms average tariff lower than British- hardly argued French economic development distorted by trade imposed by France. Anti-capitalist social psychology (mentalite)Annales 1930s to 1990s inherently rigid structure constraing historical outcomes social values can lead individuals to behave differently from the dictates of market optimization programme Cliometricians Cox and Nye (women in textiles paid their marginal product), Grantham mixed husbandry profit max response demonstrate rationality French economic agents mentalities could not have significantly affected the allocation of resources. Landes: Industrial enterprises too small owners refuse to dilute control over their enterprises by drawn on external supplies of capital and managerial skills Nye finds little evidence of economies of scale in 1865 industrial census Sicsic French industrial structure not irrationally biased towards small firms individual industries French firms nor noticeably smaller than British ones industrial structure outcome of endogenous product differentiation by monopolistic competitors marketed their local output or well-defined markets Comments | 
|
